Strategy question
There is a long line every weekend for dinner at a local Burmese restaurant. You are the owner. Would you consider it as a good thing or bad thing? What would you do?
- Strategy
- Hard
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What this question tests
Tests business judgment on interpreting a demand signal as an opportunity rather than only a problem, with a clear recommendation.
How to approach it
- Reframe first: a consistent weekend line is mainly a good sign of strong demand and food quality, with a real cost in walked-away customers.
- Estimate the cost: each hour of line likely turns away some fraction of potential diners who won't wait or come back.
- Consider a few responses: a reservation or waitlist system, expanded seating or hours, or simply accepting some line as a marketing signal of popularity.
- Recommend a phone or app-based waitlist first, since it's low-cost and captures walk-aways without changing the restaurant's character.
- Weigh a bigger move, like adding weekend seating capacity, only if the waitlist data shows consistent turned-away demand over several weeks.
What a strong answer includes
- Frames it correctly as mostly good with a real hidden cost, rather than purely good or purely bad.
- Proposes a low-risk first step, a waitlist, before recommending a costly capacity expansion.
- Ties the recommendation to a measurable trigger, waitlist data, rather than acting on instinct alone.
Common mistakes
- Calling it purely a good thing with no acknowledgment of turned-away customers as lost revenue.
- Jumping straight to expensive capacity expansion without first measuring true unmet demand.
Likely follow-up questions
- How would you measure how many customers are actually walking away versus waiting?
- Would you ever intentionally keep some line as a marketing signal?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop